How Much Health Insurance Do You Need in India?

Life is uncertain, and anyone can get sick or injured anytime. With rising medical expenses in India, health insurance has become more of a necessity than a choice. Although the COVID-19 pandemic encouraged many people to buy medical insurance, buying the right sum insured is still a concern. Let’s find out the ideal health insurance coverage amount for different people in India.

Read More

Policybazaar exclusive benefits
30 minutes claim support##
(In 120+ cities)
Relationship manager
For every customer
24*7 claims assistance
In 30 mins. guaranteed*
Instant policy issuance
No medical tests~
People trust Policybazaar^
9.7 crore
Registered consumers
51
Insurance partners
4.9 crore
Policies sold
Policybazaar is one of India's leading digital insurance platform
0%
Find affordable plans with up to 25% Discount**

Select members you want to insure

  • More Members
  • Back
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Maximum child sum can be 4
    This will help us calculate the premium & discounts for your family
    Previous step
    Continue
    This will help us to find the network of Cashless Hospitals in your city

      Popular Cities

      Previous step
      Continue
      Get to plans directly next time you visit us
      Please provide your active international number
      Previous step
      Continue
      We will find you the plans that cover your condition.

      Do any member(s) have any existing illnesses for which they take regular medication?

      Get Updates on WhatsApp

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step

      What is the Ideal Health Insurance Coverage in India?

      Insurance experts suggest buying a health insurance policy with a sum insured of at least ₹5-10 lakh in India. However, it is important to assess your health needs and choose a coverage amount that pays for your medical expenses comfortably. This is because the same sum insured may not be right for different people.

      For instance, a ₹5 lakh health policy may be enough for a young adult in his 20s living in a tier-3 city like Mysore. But a 40-year-old diabetic man in Delhi will require a mediclaim policy of at least ₹15-25 lakh due to his age, pre-existing condition and expensive healthcare facilities in the tier-1 city of Delhi.

      Check out the following table to know how much sum insured for health insurance is enough for you:

      Types of Plans Ideal Health Insurance Sum Insured
      Tier-1 City Tier-2 City Tier-3 City
      Individual Health Insurance Plan ₹10 lakh & above ₹5-10 lakh ₹5 lakh
      Family Floater Health Insurance Plan ₹30 lakh & above ₹20 lakh & above ₹10 lakh & above
      Senior Citizen Health Insurance Plan ₹20 lakh & above ₹15 lakh & above ₹10 lakh & above

      *Disclaimer: The above sum insured is suggestive and may vary as per the age and medical needs of the people.

      How to Choose Your Ideal Health Insurance Coverage Amount?

      There are two rules that you must follow to choose the right coverage amount for your health insurance policy. They are:

      1. Your sum insured should be at least 50% of your annual income.
      2. Your coverage amount should be able to cover the cost of a critical illness, such as a coronary artery bypass graft, at your preferred hospital.

      How Much Health Insurance is Enough in India?

      If you want to buy health insurance for yourself, then you must opt for a coverage amount equivalent to at least half of your annual income. For instance, if your annual income is ₹10 lakh, you must opt for a health insurance cover of at least ₹5 lakh.

      However, healthcare expenses have increased tremendously in the last few years. In this situation, opting for a lower health cover may not be enough, even if it is equivalent to 50% of your salary. Hence, insurance experts advise people to opt for a minimum health insurance cover of ₹5 lakh to cover their medical expenses comfortably.

      Moreover, if you buy insurance in the early 20s, the chances of raising a claim are lower in early adulthood. As a result, you will be able to increase your sum insured at no extra cost with the help of a cumulative bonus at every claim-free year.

      Factors to Consider While Choosing the Right Health Insurance Coverage Amount

      Here are some factors to consider while choosing your ideal health insurance coverage amount:

      • Age of the Insured - Your age should be considered while deciding on the medical insurance coverage amount. The higher is your age, the higher should be the sum insured amount. This is essential because you are more likely to fall sick and develop medical conditions as your age increases. Thus, a senior citizen will require a higher sum insured than a man in his 20s.
      • Medical History - Your medical history and pre-existing diseases should be considered while choosing a sum insured for the mediclaim policy. This is because you are more likely to raise claims frequently if you have a pre-existing disease. Therefore, you should go for a higher coverage amount if you have a pre-existing disease.
      • City of Residence - The city where you reside should be considered while picking the sum insured for your policy. The cost of healthcare facilities in tier-1 cities like Delhi and Bombay is higher than in tier-2 and tier-3 cities. So, if you live in a tier-1 city, you should opt for a higher sum insured as compared to a person living in a tier-2 or tier-3 city.
      • Type of Policy - The type of medical insurance policy you plan to buy should be kept in mind while deciding your health insurance coverage amount. If you are buying a policy just for yourself, you can go for a lower sum insured. But if you are buying insurance for your entire family, you must opt for a higher coverage amount.
      • Type of Hospital - The type of hospital where you plan to avail treatment should be considered at the time of deciding the policy coverage amount. Obtaining treatment at a reputed private hospital will cost you more than in a government hospital. Hence, a higher sum insured should be opted for by people who prefer reputed private hospitals.
      • Lifestyle Habits - You should also keep your lifestyle habits in mind while picking a sum insured for your health policy. If you have poor lifestyle habits like excessive smoking, drinking, consumption of junk food and no physical activity, then you are very likely to develop lifestyle diseases like obesity, diabetes, hypertension, etc. Hence, you should buy a mediclaim policy with a high sum insured that can cover the cost of treating these lifestyle diseases.
      • Ability to Afford - Your income and the ability to afford a health insurance plan should be kept in mind while choosing the coverage amount. If your income is limited and you cannot afford to pay costly premiums, then you must opt for a lower sum insured. Alternatively, if you can pay expensive premiums and want comprehensive coverage, you can go for a ₹1 crore health insurance policy.
      • Top-up Health Insurance Plan - If you have a top-up health insurance policy, you can opt for a base policy with a lower sum insured. This is because you are already covered under a top-up or super top-up health insurance policy and do not need to buy another policy with a high coverage amount.

      How Much Health Insurance Do You Need in India for Family?

      Just like yourself, you should cover your entire family under a medical insurance policy. This is because a medical emergency can occur with any member of your family at any time. Moreover, a single hospitalization can severely reduce your family's savings. To avoid such situations, insurance experts advise a family of four to opt for a minimum health insurance cover of ₹10 lakh.

      The good thing about buying insurance for your family is that you can opt for a family floater health insurance plan and reduce your premiums substantially. Under family floater plans, a single sum insured is shared by all insured family members on a floater basis. Since you do not have to buy individual health policies for each family member, it lowers your overall premium costs. Besides, the chances of all family members raising a claim in the same year are very low.

      For example, suppose the premium for a family health policy of 10 lakh is ₹20,000 and the cost of an individual health policy of ₹5 lakh is ₹10,000. So, if you buy an individual health policy for four family members, you will have to pay a total premium of ₹40,000. However, you can get the same coverage on a floater basis under a family health insurance plan for ₹20,000.

      How Much Health Insurance Do You Need for Parents/ Senior Citizens?

      Senior citizens and parents are most vulnerable to illness and diseases due to their age. They require health insurance the most as they are more likely to develop a medical condition or get hospitalized. Moreover, given the medical inflation today, a bypass surgery can easily cost up to 2-3 lakh in a good hospital, while a small surgical procedure can easily cost you up to ₹1 lakh.

      Hence, senior citizens and parents require a health policy with a high sum insured amount. You can opt for health insurance for parents or a senior citizen health insurance policy with a high sum insured to ensure adequate coverage for them.

      But with an increase in the sum insured, the premium will also increase. Insurance companies generally charge a higher premium to senior citizens as they are more likely to raise a claim. Thus, make sure to check the premium of the medical insurance policy before buying it for your parents or senior citizens.

      How to Avoid Opting for a Low Health Insurance Sum Insured Amount?

      Follow the tips given below to avoid opting for a low coverage amount of your health insurance policy and getting underinsured:

      1. Evaluate Your Health Needs Thoroughly

        The first step in choosing the right sum insured is to analyse your health needs and requirements carefully. You must assess your medical history, current health needs and future medical expenses. Doing so will help you choose a coverage amount that comfortably covers all your medical expenses.

      2. Check the Policy Terms and Conditions

        Go through the terms and conditions of your health insurance policy thoroughly to understand what you are covered for. You should clearly understand your coverage benefits and policy exclusions. This will help you identify the limitations for your preferred sum insured amount under your policy, helping you make an informed decision.

      3. Pick an Adequate Sum Insured Amount

        Choose a coverage amount for your medical insurance policy that adequately covers all your anticipated medical expenses, even if it means paying a high premium. Paying a marginally high premium once a year is much better than paying expensive hospital bills.

      4. Reach Out to Health Insurance Experts

        If you are unable to make a decision on your own, you can get help from insurance experts at Policybazaar.com. They can help you assess your health needs, understand policy terms & conditions and choose the right sum insured for yourself.

      FAQs

      • Q1. How much health insurance do I need?

        Ans: As per a rule of thumb, you should opt for a sum insured amount of up to 50% of your annual income under your health insurance policy. However, the amount should be sufficient to cover the treatment cost of a major illness like heart attack, kidney failure, etc. Hence, insurance experts advise people to buy a medical insurance policy of at least ₹5-10 lakh, depending on the city they reside in. But if you have any pre-existing disease, you should opt for a higher sum insured of at least ₹25-30 lakh.
      • Q2. Is 5 lakh health insurance enough?

        Ans: A ₹5 lakh health insurance policy is adequate if you live in a tier-2 or tier-3 city. But if you live in a tier-1 metro city like Delhi, Mumbai, or Gurgaon, a health cover of more than ₹5 lakh may be needed due to the high cost of healthcare facilities. Hence, it is advisable to opt for a health plan of at least ₹10 lakh. In case you want to cover the medical expenses of your entire family, it is advisable to purchase a mediclaim policy of at least ₹30 lakh.
      • Q3. How much health insurance is sufficient in India?

        Ans: When purchasing a health insurance plan, it is important to ensure that your sum insured is at least half of your annual salary. Insurance experts suggest a mediclaim coverage amount of at least ₹5-10 lakh in India. Moreover, the sum insured should be higher if you are in your 50s and 60s. For example, a senior citizen above the age of 60 years should invest in a health insurance policy of at least ₹20 lakh, depending on your city of residence and pre-existing diseases.
      • Q4. What is the limit of health insurance coverage in India?

        Ans: There is no limit on the medical insurance coverage amount in India. Several health insurance companies provide plans with a sum insured of up to ₹1 crore and ₹2 crore.
      • Q5. Is ₹1 crore health insurance good?

        Ans: Yes. Buying a health insurance policy with a sum insured of ₹1 crore is a good decision. It will offer you comprehensive coverage up to your sum insured limit in most cases. Just make sure you can afford to pay the premium for a ₹1 crore health policy, as it will be pretty costly.
      book-home-visit
      Search
      Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

      Health insurance Articles

      • Recent Article
      • Popular Articles
      07 Feb 2025

      Reimbursement Claims in Health Insurance

      Health insurance is essential for managing medical expenses, but

      Read more
      05 Feb 2025

      Cashless Claims in Health Insurance

      Health insurance plays a crucial role in providing financial

      Read more
      21 Jan 2025

      Cumulative Bonus in Health Insurance

      Health insurance provides a financial shield against planned and

      Read more
      10 Jan 2025

      Benefits of Health Insurance

      In today's fast-paced world, changing lifestyles have led to a

      Read more
      10 Jan 2025

      Human Metapneumovirus (HMPV): All You Need to Know

      The world experienced a crisis of a lifetime in 2020, with the

      Read more

      Zero Waiting Period in Health Insurance Plans

      Every medical insurance plan comes with a few terms & conditions, and the waiting period is one of them. A

      Read more

      How to Apply for Ayushman Bharat Pradhan Mantri...

      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal

      Read more

      List of Health Insurance Plans for Senior Citizens

      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance

      Read more

      How to Cancel Your Health Insurance Policy &...

      Having a health insurance policy is not a choice but a necessity today. It ensures the right health coverage for you

      Read more

      *We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30- minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881.

      *Product information is authentic and solely based on the information received from the Insurer. Policybazaar is acting only as a facilitator and claims settlement shall be at the sole discretion of the Insurer. Policybazaar does not provide any medical or surgical advice or diagnosis and is not responsible for your interactions / treatment by a medical practitioner/hospital. Please consult a registered medical practitioner for any medical or surgical advice. The Information that you obtain or receive from Policybazaar, and its employees, or otherwise on the Website is for informational purposes only. As per the Insurance guidelines, you are allowed to cancel the policy with-in 30 days from the date of Issuance of policy.This option is available incase of policies with a term of one year or more.

      *All the health insurance plans cover hospitalization expenses including COVID-19 treatment cover up to the specified limits. You can also buy specific COVID-19 health insurance policies such as Corona Kavach Policy and Corona Rakshak policy.

      **All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws. GST Exemptions depend on fulfilment of qualification criteria and submission of relevant documents.

      *₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.

      *₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

      *₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases

      *₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.

      *₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.

      *No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.

      *The values taken for effective cost calculation are indicative values and may change as per the selected plan.

      *Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.

      *Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.

      *The scope of coverage may vary from plan to plan.

      ~Source: Google Review Rating available on:- http://bit.ly/3J20bXZ

      ##On ground claim assistance is available in 114 cities

      Tax Benefits are subject to changes in tax laws. GST Exemption depends on fulfilment of qualification criteria and submission of relevant documents as required by the insurers. For more details on risk factors, terms and conditions, please read the sales brochure and applicable rules and regulation carefully before concluding a sale.

      STANDARD TERMS AND CONDITIONS APPLY. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.

      Policybazaar is a registered Composite Broker |Registration No. 742, Valid till 09/06/2024, License category- Composite Broker| Visitors are hereby informed that their information submitted on the website may be shared with insurers.

      Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana - 122001 Contact Us | Legal and Admin Policies

      © Copyright 2008-2024 policybazaar.com. All Rights Reserved.

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL